The Asian Development Bank (ADB) will be providing a $80m loan to upgrade the electricity transmission ring line system in Yangon, Myanmar, to 230kV from the present 66kV capacity.
The upgrades are aimed to improve the transmission capacity of the Thida-Thaketa-Kyaikasan transmission ring lines, which serves more than one million consumers.
The project will also involve construction of two new substations at South Okkalapa and West University.
Once developed, the new 230kV ring for Yangon will be connecting the substations of Ahlone, Thida, Thaketa, South Okkalapa, Hlawga, Myang Tagar, West University, Hlaing Thayar, and connect back to Ahlone.
ADB Southeast Asia department senior energy economist Bui Duy Thanh said: "The aging and overloaded transmission network requires urgent improvements to provide stable and ample supplies of power to support the country’s economic growth targets and poverty reduction objectives.
"Yangon plays a central role as an economic hub for the country and this assistance will help the government ensure reliable power supplies are provided to the city and surrounding areas."
This transmission line upgrade is expected to associate with other power infrastructure upgrades, which are being implemented by the Myanmar Electric Power Enterprise.
In order to keep up with economy growths of around 7.8% per year over the next ten years, and the power demand increase of around 9% annually to 2030, the Southeast Asian country requires strengthening of its energy transmission and distribution networks, ADB said.
Growing power demands will also need Myanmar to seek additional energy sources.
The financial body had been assisting the country in meeting its energy goals through infrastructure upgrades, regulatory development and institutional capacity building.
A $60m loan had been approved by ADB by the end of 2013 for Myanmar to support rehabilitation of sections of its power distribution network.